Question

Neal buys a board game. He pays for the board game and

pays $1.54 in sales tax. The sales tax rate is 5.5%.
What is the original price of the board game, before tax?

Answer 1

$27.99

Explanation:

100/7.25% sales tax = 1.54 x 13.7931034483 = 21.2413793104

We did the example to prove that when accounting for fixed tax the price will be higher once tax of same percentage amount applied.

This proves 1.75% more in interest is a far lower price ($6.56 less)

Where we compare the price set for 5.5 as asked in the question.

100/5.5% sales tax = 1.54 x 18.181818181 =27.9999999987

=$27.99

We do not round up or down repeating numbers.